Benefits of consolidating private student loans
However, when you refinance federal loans, they’ll become private loans and will no longer be eligible for federal programs, including income-driven repayment plans and forgiveness programs.
While both options involve combining multiple loans into one, private loan consolidation is generally referred to as refinancing.
There are a variety of private lenders that offer student loan refinancing, each with different potential interest rates, loan terms and features. When you consolidate your student loans, you essentially combine multiple loans into one.
To facilitate the consolidation, a lender will pay off your current loans and issue you a new loan for the total amount you owe.
It can be tempting to combine debts once you get married for the sake of combining debts, but everything you do should be done for the sake of your future.
Dealing with long-term debt can be difficult, but having a strategy and tools can help.
Those advantages are: If you have determined that consolidating your student loans with your spouse’s loans is the best idea, it is best to ensure that the two of you are on the same page with everything.
Here are some additional requirements: If you just graduated with three federal Direct Subsidized loans, one for ,000, one for ,000 and one for ,000, and you get a job earning ,000 a year in San Francisco, you’ll pay off the loans in 10 years and pay a total of ,409 once you start making payments under the Standard Repayment Plan.Whatever you do, it is best to do what you need for the sake of your finances and your future.If you find that consolidation is not the best thing for you and your spouse to do, then you don’t have to do it.When you get married, what was separate tends to become one.The same can be said of student debt, depending on your preference.